ETH hits a new high of $ 3,457, ETH / BTC at almost three years.

The cryptocurrency ether hit a new all-time high on Tuesday before dropping sharply as some investors reaped profits from a scorching market with questionable new entrants.

A day after crossing $ 3,000 for the first time, ether, the token traded on the ethereum blockchain, hit $ 3,457.64 on the bitstamp exchange before falling 6% to $ 3,244.

That still leaves him with a gain of around 340% this year. Therise is in part a spinoff from the bitcoin flows, which has gained momentum as big name investors, from automaker Elon Musk Tesla to Wall Street investor Stanley Druckenmiller.

New crypto-coins are proliferating

It is also motivated by a speculative frenzy in the asset class. Joke cryptocurrency’s dogecoin has risen 9,000% this year to bring its token sum on issue to over $ 54 billion. Other new tokens have proliferated and buyers this week piled on several tiny new coins promoted by pornstars.

“What we are seeing right now is the definition of speculative excess,” said IG Markets analyst Kyle Rodda, who compared it to the tech bubble madness of two decades ago. .

“There is money thrown at anything in the cryptospace,” he added.

With a market cap of $ 376 billion, traders take ether gains much more seriously and say it is catching up with the rise of bitcoin and that ethereum blockchain upgrades are making it more useful.

BTC drops 3% to $ 55,625

Against bitcoin, the value of ether has more than doubled this year and peaked more than two and a half years early on Tuesday. Bitcoin, up 90% this year, fell to $ 55,625 while the US dollar strengthened slightly elsewhere.